Informative social interactions

Luc Arrondel, Hector Calvo-Pardo, Chryssi Giannitsarou and Michael Haliassos
Authors registered in the RePEc Author Service: Hector Fernando Calvo Pardo

Journal of Economic Behavior & Organization, 2022, vol. 203, issue C, 246-263

Abstract: Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a developed economy with multiple information sources. We find that a respondent’s connectedness, proxied by perceived prevalence of information or participation in the small financial circle, improves expectation accuracy indirectly, through boosting accuracy of perceived past returns; and influences stock participation and exposure not only by influencing expectations, but also directly.

Keywords: Household finance; Subjective expectations; Peer effects; Information networks; Portfolio choice (search for similar items in EconPapers)
JEL-codes: E21 G11 G5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.sciencedirect.com/science/article/pii/S0167268122003237
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Related works:
Working Paper: Informative Social Interactions (2022)
Working Paper: Informative Social Interactions (2019)
Working Paper: Informative social interactions (2019)
Working Paper: Informative Social Interactions (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:203:y:2022:i:c:p:246-263

DOI: 10.1016/j.jebo.2022.09.006

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